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The standard deviation of Southwest Inc. stock returns is 20% and that of Northeast Inc. returns is also 20%. When you hold both stocks in
The standard deviation of Southwest Inc. stock returns is 20% and that of Northeast Inc. returns is also 20%. When you hold both stocks in a portfolio and the two stocks returns have zero correlation, the overall standard deviation of returns of the portfolio is:
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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